Buying stock in a company can be gambling, but doesn't need to be.
If you buy stock hoping that you can sell it for a quick profit because of the daily (or monthly) swings in price, then you are not investing. That is gambling and on a large scale. You are hoping that for some unknown reason, the trading price will go up instead of down, and that you can outguess the public and sell at the best price.
If you buy and hold stock in a quality company that is earning money, you are not gambling. You are part owner of a money making business and the price of the stock goes up for a real reason: the company is earning money every year and becoming more valuable.
If you save a portion of your income each payday and invest in sturdy stocks, over the course of several years you can grow very wealthy indeed. Your money grows exponentially.
When you own stock, you are an owner of the company and the earnings belong to you. But it takes time for your company to earn money.
Some people can learn from the mistakes of other people. Gamblers usually can't and will ignore advice like this.
Not at all.
In gambling, the odds are fixed based on the 'total pot'….the maximum that anyone can win is the amount other people have ALSO bet (minus the Bookies' fees)…so if 100 people bet a dollar each on a horse to win, and that horse wins, the maximum payout will be $100 (minus the Bookmaker's commission)….when you invest in stock, the "winnings" are derived from how well the company subsequently perform & how much profit they make….so with a stock investment, it is entirely possible (and quite common) for ALL 100 people to get back MORE than their original dollar each…
The very definition of an "investment" is that it is not a zero-sum proposition….
When you gamble, you place an amount down on something that happens at random (usually against you) and if you lose, you lose your entire initial bet. In the stock market, you can do your DD and research on the company and chart trends so that you make money. But one key difference is that you will never lose 100% of your investment when it comes to the stock market. No stock has ever gone to $0 a share in one minute
Yes and no. If you buy say US Treasury Bonds, the chances of the US Govt. defaulting on them is nil. If the US Govt. goes bankrupt, so does the whole world.
If you sink all your money into Penny Stocks, well you can lose it all very quickly-Penny Stocks trading is only for serious professionals, as those markets are not regulated and prices go up and down Very quickly. Stock Futures are the same way. For example: if you bought say Orange Juice Futures every year for the past 30 years, some years you would be rich and some years you would be broke. They depend a Lot on the weather.
When I'm gambling (and I like blackjack), I know I am gambling. When I buy a stock, or a mutual fund, I know there is risk involved. But gambling – not really. Or at least that's the way I see it.
But it's your money, so you can think of it any way you wish.
Investments are not intended to be gambles. But for many people, trying for the big win produces the big loss.
Yes. Which ever company you decide to invest in. It's a 50/50 chance you will get more then what you put in. The company could do badly and you get nothing. Or the company could go great and you earn more. My advice is to watch the stocks then invest where you feel comfortable
Gamblers are looking for a short-term payoff. Investors are looking for a long-term payoff. Investors who are looking for a short-term payoff are gambling.
you should invest stock market